In an interview on CNBC, President Donald Trump said that China is going to make a deal because “they are going to have to” in the future. Also, Mr Trump defended the tariffs he slapped on Mexico and China, which he says are putting the US “at a tremendous competitive advantage.” The Trump administration aims to strike a trade deal with Beijing to address concerns including intellectual property theft, forced technology transfers and trade deficits. Trump used tariffs to bring China to the negotiating table.
The White House touted progress toward an agreement earlier this year before talks fell apart. Thus far the US slapped duties on $250 of Chinese products, while Beijing has put tariffs on $110 billion of American goods. Trump has now threatened to place tariffs on $300 billion in untaxed Chinese goods. This fight will go on and there are concerns that the G20 coming in Japan will not result in a direct meeting between President Xi of China and President Trump of the US. The trade war will likely become more intense in the coming months.
Outside of the G20, there will be other opportunities for trade talks but they will be scarce and fear is that this war will trigger a global recession as both Presidents will not back down.